Friday, February 7, 2014
There are many reasons that banks attract customers. Often, people already have a relationship with their bank based on their prior banking needs. They feel familiar and comfortable dealing with a name and people they are used to seeing. Banks are also the most traditional form of lending. The parents of today's generation often did not have many choices other than a bank. The internet did not exist, and smaller financial companies were rare. As a result, banks are often the first source that comes to mind with a person needs a loan. Banks often offer some of the lowest interest rates available.
There are many drawbacks to bank lending also, especially for the modern consumer. Where time is one of the most valuable commodities for today's business or individual, banks have the lengthiest lending procedures. They have extensive paperwork and documentation requirements. Additionally, due to the volume of bank lending loan requests they receive compared to relatively few associates, long waiting times are experienced by potential customers. Additionally, customers are limited to the bank's business hours, which can often create a schedule conflict. Web companies, by contrast, are available 24 hours a day
Wednesday, July 17, 2013
Online lending has become a trillion dollar industry in recent years as online lenders have learned to market themselves in a new and progressive way. Finding a niche by targeting masses that fit into lending categories that were left out by traditional lenders, online lending serves a genuine need for millions of potential customers while simultaneously producing a highly profitable industry. Online mortgage lending is quickly causing a real threat to traditional lenders that cannot compete with low online fees.
Online lending has been a godsend for lots of customers that could not find the financial solutions they needed elsewhere. One large financial segment is those that do not have or do not with to use collateral. Online lending has produces lots of strong companies that provide a full spectrum of personal and business loan products that are unsecured, providing great financial options for people that are constantly on the move or simply do not like trying their personal assets to loan products.
The many Americans with less than perfect credit have also benefited tremendously from online lending. Previously, these customers found it near impossible to get the loan products they needed. Today, they can get everything from personal loans to home loans to online mortgage lending with excellent service and competitive rates.
Other than providing financial solutions for customers, online lending has changed the face of the lending industry by providing a faster, more efficient and simply a more advanced way of doing business. Online lending is highly efficient and convenient, and forced banks and traditional lenders to renovate their own systems as well so that they can keep up with the new surge of innovative web based lenders.